SEP - Too Late?

[Snaggletooth]

A conventional IRA may be established and contributed up to the tax deadline and still be deducted (assuming it doesn't phase out or is otherwise disqualified).

I've always been told that an SEP may be CONTRIBUTED up to the tax deadline but has to be ESTABLISHED before the end of previous year.

Is this correct? Are there any strategies to defeat this with the various "hybrid" SEPs and plans available??

[Black Bart]

Hmmm...well,

I always thought the employer had until 4-15 to establish one. Here's something on that -- don't know how authoritative it is, but....any port in a storm...check out "step one."

http://www.investopedia.com/university/retirementplans/sepira/sepira1.asp

[S T]

Sep

See TTB page 13-5 -

• New accounts can be set up any time by
return due date, including extensions.
• Contributions must be made by the
return due date, including extensions

Snags, I believe you are thinking the Qualified Plans - which must be set up by the last day of the plan year for which the deductible contributions will be made.

Sandy

[Lion]

Simple

SIMPLE had to be set up by 1 October of plan year, but doesn't have to be contributed to then. Thought SEP could be set up and contributed to by due date of return including extensions. But, it's been a long time since I had one in it's first year.